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Why Is Lyft (LYFT) Up 5.5% Since Last Earnings Report?
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A month has gone by since the last earnings report for Lyft (LYFT - Free Report) . Shares have added about 5.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Lyft due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Earnings Beat at Lyft in Q2
Lyft reported second-quarter 2023 earnings (excluding 45 cents from non-recurring items) of 15 cents per share. The Zacks Consensus Estimate was pegged at a loss of 1 cent. In the year-ago period, Lyft reported earnings of 12 cents.
Total revenues of $1,020.9 million beat the Zacks Consensus Estimate of $1017.5 million. The top line rose 3% year over year reflecting growth in the rideshare market. Active riders increased 8.2% year over year in the reported quarter to 21.45 million.
Lyft's revenue per active rider decreased 4.8% year over year $47.51 The decline was due to lower revenue per ride. Adjusted EBITDA in the quarter under review totaled $41 million. The figure outshined the first-quarter 2023 actual figure of $22.7 million. Adjusted EBITDA margin was 4%. In the previous quarter, the metric was at 2.3%.
Total costs and expenses decreased 13.2% year over year to $1.18 billion. Contributions climbed 35.3% year over year to $426.4 million. The contribution margin improved to 41.8% in the reported quarter from 31.8% in the year-ago period.
Q3 Outlook
For the third quarter of 2023, management expects revenues to be between $1.13 billion and $1.15 billion. Adjusted EBITDA is projected in the range of $75-$85 million. Adjusted EBITDA margin is anticipated to be approximately 7%. The contribution margin is anticipated to be approximately 45%.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
The consensus estimate has shifted 32.19% due to these changes.
VGM Scores
At this time, Lyft has a strong Growth Score of A, a grade with the same score on the momentum front. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Lyft has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Lyft belongs to the Zacks Internet - Services industry. Another stock from the same industry, DoorDash, Inc. (DASH - Free Report) , has gained 0.3% over the past month. More than a month has passed since the company reported results for the quarter ended June 2023.
DoorDash, Inc. reported revenues of $2.13 billion in the last reported quarter, representing a year-over-year change of +32.7%. EPS of -$0.44 for the same period compares with -$0.72 a year ago.
DoorDash, Inc. is expected to post a loss of $0.45 per share for the current quarter, representing a year-over-year change of +41.6%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.2%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for DoorDash, Inc. Also, the stock has a VGM Score of B.
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Why Is Lyft (LYFT) Up 5.5% Since Last Earnings Report?
A month has gone by since the last earnings report for Lyft (LYFT - Free Report) . Shares have added about 5.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Lyft due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Earnings Beat at Lyft in Q2
Lyft reported second-quarter 2023 earnings (excluding 45 cents from non-recurring items) of 15 cents per share. The Zacks Consensus Estimate was pegged at a loss of 1 cent. In the year-ago period, Lyft reported earnings of 12 cents.
Total revenues of $1,020.9 million beat the Zacks Consensus Estimate of $1017.5 million. The top line rose 3% year over year reflecting growth in the rideshare market. Active riders increased 8.2% year over year in the reported quarter to 21.45 million.
Lyft's revenue per active rider decreased 4.8% year over year $47.51 The decline was due to lower revenue per ride. Adjusted EBITDA in the quarter under review totaled $41 million. The figure outshined the first-quarter 2023 actual figure of $22.7 million. Adjusted EBITDA margin was 4%. In the previous quarter, the metric was at 2.3%.
Total costs and expenses decreased 13.2% year over year to $1.18 billion. Contributions climbed 35.3% year over year to $426.4 million. The contribution margin improved to 41.8% in the reported quarter from 31.8% in the year-ago period.
Q3 Outlook
For the third quarter of 2023, management expects revenues to be between $1.13 billion and $1.15 billion. Adjusted EBITDA is projected in the range of $75-$85 million. Adjusted EBITDA margin is anticipated to be approximately 7%. The contribution margin is anticipated to be approximately 45%.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
The consensus estimate has shifted 32.19% due to these changes.
VGM Scores
At this time, Lyft has a strong Growth Score of A, a grade with the same score on the momentum front. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Lyft has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Lyft belongs to the Zacks Internet - Services industry. Another stock from the same industry, DoorDash, Inc. (DASH - Free Report) , has gained 0.3% over the past month. More than a month has passed since the company reported results for the quarter ended June 2023.
DoorDash, Inc. reported revenues of $2.13 billion in the last reported quarter, representing a year-over-year change of +32.7%. EPS of -$0.44 for the same period compares with -$0.72 a year ago.
DoorDash, Inc. is expected to post a loss of $0.45 per share for the current quarter, representing a year-over-year change of +41.6%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.2%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for DoorDash, Inc. Also, the stock has a VGM Score of B.